The UK Construction Market was valued at USD 256.6 Billion in 2024, and is projected to reach USD 388.6 Billion by 2034, rising at a CAGR of 4.30%.
This growth reflects the UK government’s strong commitment to infrastructure development, with a notable emphasis on expanding the country’s aviation network, currently ranked as the third largest globally. As the UK invests in upgrading transportation systems and modernizing public infrastructure, the construction sector is positioned for consistent growth. The increasing demand for sustainable construction practices, coupled with advancements in digital construction technologies such as Building Information Modeling (BIM) and modular construction, is driving operational efficiency and improving project outcomes.
Additionally, the push for greener infrastructure to meet the UK’s net-zero carbon goals by 2050 is creating opportunities for innovation in the sector. Private investments are surging as developers and institutional investors recognize the long-term potential of sustainable and high-performance buildings. The market is further supported by an increasing focus on mixed-use developments that blend residential, commercial, and institutional spaces, offering multifaceted benefits to urban communities. With rising urbanization and population growth, the demand for new housing, commercial spaces, and public infrastructure is set to boost market momentum.
The UK construction market is segmented into residential, commercial, industrial, mixed-use, infrastructure & heavy civil, institutional, specialized, renovation/remodeling, and environmental sectors. The residential construction segment generated USD 48.5 billion in 2024 and is forecasted to grow at a CAGR of 5.3% between 2025 and 2034. Government-backed initiatives aimed at supporting first-time homebuyers and addressing the ongoing housing shortage are expected to drive this growth. Private investments are pouring into the residential segment, attracting real estate developers looking to capitalize on the growing demand for modern and energy-efficient housing solutions. The increased popularity of Build-to-Rent (BTR) properties is further accelerating investment in the housing sector.
The UK construction market is also segmented by end-use into the private and public sectors, with the private sector holding a dominant 74.7% share in 2024. Private developers, real estate firms, and institutional investors are driving growth by initiating large-scale residential, commercial, and infrastructure projects. Rising demand for rental housing, especially in the Build-to-Rent (BTR) sector, is creating lucrative opportunities for private sector investments. In addition to new construction, the renovation and remodeling segment is witnessing increased activity as property owners look to upgrade and modernize their existing assets.
The market is further categorized by contracting type, including general contracting, design-build contracting, and construction management. General contracting accounted for a significant share in 2024 and is expected to maintain its leading position throughout the forecast period. General contractors play a crucial role in managing the entire project lifecycle, from procurement and labor management to regulatory compliance and final project delivery. This model offers streamlined execution, cost control, and efficient risk management, making it the preferred choice for large-scale residential, commercial, and infrastructure projects. The steady rise in infrastructure investments and growing emphasis on sustainable construction practices are expected to bolster the market’s growth trajectory in the coming years.
This product will be delivered within 2-4 business days.
This growth reflects the UK government’s strong commitment to infrastructure development, with a notable emphasis on expanding the country’s aviation network, currently ranked as the third largest globally. As the UK invests in upgrading transportation systems and modernizing public infrastructure, the construction sector is positioned for consistent growth. The increasing demand for sustainable construction practices, coupled with advancements in digital construction technologies such as Building Information Modeling (BIM) and modular construction, is driving operational efficiency and improving project outcomes.
Additionally, the push for greener infrastructure to meet the UK’s net-zero carbon goals by 2050 is creating opportunities for innovation in the sector. Private investments are surging as developers and institutional investors recognize the long-term potential of sustainable and high-performance buildings. The market is further supported by an increasing focus on mixed-use developments that blend residential, commercial, and institutional spaces, offering multifaceted benefits to urban communities. With rising urbanization and population growth, the demand for new housing, commercial spaces, and public infrastructure is set to boost market momentum.
The UK construction market is segmented into residential, commercial, industrial, mixed-use, infrastructure & heavy civil, institutional, specialized, renovation/remodeling, and environmental sectors. The residential construction segment generated USD 48.5 billion in 2024 and is forecasted to grow at a CAGR of 5.3% between 2025 and 2034. Government-backed initiatives aimed at supporting first-time homebuyers and addressing the ongoing housing shortage are expected to drive this growth. Private investments are pouring into the residential segment, attracting real estate developers looking to capitalize on the growing demand for modern and energy-efficient housing solutions. The increased popularity of Build-to-Rent (BTR) properties is further accelerating investment in the housing sector.
The UK construction market is also segmented by end-use into the private and public sectors, with the private sector holding a dominant 74.7% share in 2024. Private developers, real estate firms, and institutional investors are driving growth by initiating large-scale residential, commercial, and infrastructure projects. Rising demand for rental housing, especially in the Build-to-Rent (BTR) sector, is creating lucrative opportunities for private sector investments. In addition to new construction, the renovation and remodeling segment is witnessing increased activity as property owners look to upgrade and modernize their existing assets.
The market is further categorized by contracting type, including general contracting, design-build contracting, and construction management. General contracting accounted for a significant share in 2024 and is expected to maintain its leading position throughout the forecast period. General contractors play a crucial role in managing the entire project lifecycle, from procurement and labor management to regulatory compliance and final project delivery. This model offers streamlined execution, cost control, and efficient risk management, making it the preferred choice for large-scale residential, commercial, and infrastructure projects. The steady rise in infrastructure investments and growing emphasis on sustainable construction practices are expected to bolster the market’s growth trajectory in the coming years.
Comprehensive Market Analysis and Forecast
- Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
- Competitive landscape with Porter’s Five Forces and PESTEL analysis
- Market size, segmentation, and regional forecasts
- In-depth company profiles, business strategies, financial insights, and SWOT analysis
This product will be delivered within 2-4 business days.
Table of Contents
Chapter 1 Methodology & Scope
Chapter 2 Executive Summary
Chapter 3 Industry Insights
Chapter 4 Competitive Landscape, 2024
Chapter 5 Market Estimates & Forecast, by Construction Type (Revenue) - 2021-2034
Chapter 6 Market Estimates & Forecast, by End Use (Revenue) - 2021-2034
Chapter 7 Market Estimates & Forecast, by Contracting Type (Revenue) - 2021-2034
Chapter 8 Market Estimates & Forecast, by Scale (Revenue) - 2021-2034
Chapter 9 Company Profiles
Companies Mentioned
The companies profiled in this UK Construction market report include:- ACS Group
- Bouygues Construction
- Costain Group PLC
- Crest Nicholson Holdings PLC
- Eiffage S.A.
- Ferrovial S.A.
- Hochtief AG
- Interserve Group Limited
- Skanska AB
- VINCI SA
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | March 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 256.6 Billion |
| Forecasted Market Value ( USD | $ 388.6 Billion |
| Compound Annual Growth Rate | 4.3% |
| Regions Covered | United Kingdom |
| No. of Companies Mentioned | 11 |
